Whalesbook
The Reserve Bank of India has notified new Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026. These comprehensive rules, along with detailed directions, are set to become effective on October 1, 2026. The central bank's move signals a tightening of oversight on international trade transactions.
Stricter Bank Reporting Mandates
Under the new regulations, authorized dealer (AD) banks face significantly abbreviated timelines for reporting. For goods exported through non-Electronic Data Interchange (EDI) ports, AD banks must now input export declaration form (EDF) details into the Export Data Processing and Monitoring System (EDPMS) within five working days of receipt.
This reporting requirement extends to services, including software exports. Banks are mandated to upload exporter-submitted EDF details for services into EDPMS within the same five-day window. The RBI aims to ensure swift capture of all export-related data.
On the import front, AD banks are similarly required to record import document details from non-EDI ports in the Import Data Processing and Monitoring System (IDPMS) within five working days. This includes details of service imports declared by importers.
Enhanced Transaction Monitoring
The RBI is also mandating that all inward and outward remittances linked to exports, imports, and merchanting trade transactions must be reported in either EDPMS or IDPMS. This unified reporting aims to provide a clearer picture of foreign exchange flows.
Authorized dealer banks will be under continuous obligation to monitor these systems. Their role includes identifying outstanding entries and actively following up with exporters, importers, and merchanting trade participants. The objective is to ensure the timely closure or mark-off of transactions and obtain necessary documentation. This proactive monitoring is key to preventing delays and potential compliance issues in international trade finance.